The Kenyan government has established a taskforce to review the country’s fuel pricing mechanism, as disclosed by the International Monetary Fund (IMF).
Initiated in May of this year, the taskforce has been assigned the responsibility to publish its findings by August 31.
While the IMF has not disclosed specific objectives, it has emphasized the taskforce’s mandate to reform fuel pricing decisions to ensure that domestic prices consistently align with budgeted resources.
The move comes after the IMF raised concerns about Kenya’s previous use of fuel subsidies, criticizing them for being wasteful and ineffective in supporting the most vulnerable citizens.
In 2022, Kenya had set October 31 as the deadline to remove fuel subsidies, later extending it to December 31.
However, the subsidies were not removed until the pump price review in May 2023, leading to a significant increase in the cost of petroleum products across the nation.